(1) Notwithstanding anything written in Section 3, the Government of Nepal may establish a separate Kathmandu Valley Water Supply Management Board to ensure regular, orderly and efficient operation of water supply and sanitation services in municipal areas within the Kathmandu Valley.
(2) During the formation of the board according to sub-section (1), if any village or any part of it is being serviced by the service system of the municipalities of Kathmandu Valley, then such village development committee or any part of it can be included in the geographical area of ​​the board.
(3) After the formation of the board in accordance with sub-section (1), the Government of Nepal may transfer the services being operated and managed by the Institute within the Kathmandu Valley and related service systems, assets and liabilities to the board as specified.
(4) During the formation of the board in accordance with sub-section (1), if any government agency is providing services in the municipal area within the Kathmandu Valley, the government of Nepal may also transfer its service system to the board formed in accordance with this section.
(5) Within one year of the completion of the Melamchi Project, which was in operation at the time of the commencement of this Act, the water of the Melamchi River in Sindhupalchok District was brought to the Kathmandu Valley and included in the service system of the valley, all the structures of that project and the equipments connected to such structures and related obligations shall be transferred by the Government of Nepal in accordance with subsection (1). It will be transferred to the board constituted as per .
(6) If the structures and equipment of such a project are transferred in accordance with sub-section (5), the structure built under that project, the equipment and service system connected to it shall be deemed to be automatically transferred to the board formed in accordance with this section and the responsibility for its maintenance, maintenance and expansion shall be with the said board.
(7) When the structures and equipment of the project are handed over in accordance with sub-section (5), the employees associated with the structures and equipment or the service system may be transferred to the board according to this section as required.
(8) Work referred to in section 6, in addition to duties and rights, the work, duties and rights of the Kathmandu Valley Water Management Board will be as follows:-
(a) Diversion of water from natural resources outside their geographical area to obtain such water to provide services within their geographical area and enter into an agreement with other persons in accordance with prevailing laws in this regard, but when diverting water from outside their geographical area and bringing water within their geographical area Local bodies or consumers in that area can be given a reasonable amount.
(b) If it is necessary to transfer and take over the service system being operated by any municipality or service provider at the time of commencement of this Act, take ownership of such service system and cause it to be operated and managed by paying reasonable compensation,
(c) Regulate, control or prohibit the extraction and use of water from underground sources within its geographical area, as prescribed, and grant permits as prescribed to extract or use such water as required.